IndiGo. Goods and Services Tax(GST) March 2018

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Marian Walters
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1 IndiGo Goods and Services Tax(GST) March 2018

2 GST An Introduction An Introduction GST is a destination based Indirect Tax which has subsumed in itself a host of Indirect Taxes. The Act came into effect on 1st July It is a dual levy with State/Union territory GST and Central GST. Further, inter state supplies would attract an Integrated GST. Business houses buying tickets for individuals need to provide GST registration (GSTIN) to the airlines. Passengers travelling for business need to add their company's GSTIN at the time of booking. Once the booking has been made, the GST number can not be changed. The airline raises GST invoices and sends the same to the passenger at the ID provided at the time of booking. The airline uploads all invoices on the GSTN portal as per stipulated timelines. The prevailing GST rate is 5 percent on economy class tickets purchased. 2

3 Ticket Booking On-time Low fares Courteous, hassle-free service

4 GSTIN Input while booking tickets - Mandatory IndiGo is registered in all the states it operates from. The state-wise GSTINs of IndiGo are available on the website ( The agent needs to input the GSTIN of the B2B passenger/corporate before generating the PNR. If the relevant GSTIN is not fed in, the booking shall be confirmed as a B2C booking and the passenger /corporate will not be able to claim any GST benefit for the same. GSTIN cannot be or changed on a B2C booking at a future date. 4

5 Commission/Incentive On-time Low fares Courteous, hassle-free service

6 Classification of Agents from GST perspective Commission/incentive is paid to the agents, in consideration of the sale of tickets. For this purpose, agents can be categorized as follows: IndiGo Ticketing Agents Registered & not under Presumptive Method Registered & under Presumptive Method Unregistered 6

7 Registered Not Under Presumptive Method Invoice Process Agent declares GSTIN on the IndiGo portal Monthly Sales Summary fetched and commission calculated by IndiGo IndiGo Shares the commission details Travel agents share GST compliant invoices IndiGo uploads amount (after deducting TDS) to the agent IDs Agent uploads invoices in the GSTN portal Responsibility Agent IndiGo IndiGo Agent IndiGo Agent 7 One-time activity Monthly Monthly 10th of following month 20th of following month Per GST stipulated timeline

8 Registered & Under Presumptive Method Invoice Process Agent is responsible for its compliances under GST laws. It is understood that the registered agent discharging GST liability under presumptive method, don t charge GST on the invoice raised to IndiGo, however, such invoice should contain a declaration as mentioned in sample format herein below: Sample Invoice Declaration 8

9 Unregistered Agents Invoice Process Monthly Sales Summary fetched and commission calculated by IndiGo IndiGo uploads the amount post TDS to their IDs, pays GST under Reverse Charge Mechanism (RCM)* Monthly 20th of following month *GST under RCM (deferred till 31st March 2018) is applicable in case of agents with billing up to INR 20 lakhs (INR 10 Lakhs in few states) in a financial year. If billings crosses the INR 20/10 lakhs, then agent needs to be registered. 9

making bookings. This field is editable.

10 Facilities available to IndiGo agents Permanent storage of GSTIN: B2B partners can permanently save their multiple GSTINs on IndiGo website using their login IDs and use the relevant ones for making bookings. This field is editable. Depending upon the GSTIN selected, applicable GST will apply. Screen where multiple GSTINs can be added Multiple GSTINs available in drop down for selection 10

ID provided at the time of booking Retrieval of invoice from

11 Facilities available to IndiGo agents contd.. Communication of GST compliant invoice: Over , to the ID provided at the time of booking Retrieval of invoice from website by providing PNR or Invoice no. Sample Invoice Retrieval process of Invoice 11

12 Some Dos and Dont s Do s Don ts Ensure correctness of GSTIN Ensure correctness of rate & class of GST (CGST/SGST/ IGST) applied on invoices Ensure that each invoice has a unique serial number Issue tax invoice while claiming commission Upload invoices timely on the GST portal Do not over-write on the invoice. Do not cancel the invoice. Instead, use credit note in case of cancellation of supply of services Please reach out to Team IndiGo for any clarification 12

Q1. How can I update Sale / Purchase Type master for GST?... 2 Q2. Is there a single Tax Category for both VAT and GST transactions?

FAQ for GST Q1. How can I update Sale / Purchase Type master for GST?... 2 Q2. Is there a single Tax Category for both VAT and GST transactions? If yes then how it will work?... 2 Q3. How can I create